Southern California Real Estate Prices Continue to Rise
Southern California home prices are some of the strongest in the nation, with prices continuing to rise according to the latest figures from July, although sales volume has reportedly dropped somewhat. In today’s article from Orange County Berkshire Hathaway Realtor Brittany Leighton, we’ll take a look at the current Southern California real estate market conditions and how they’re impacting buyers and sellers like you.
Southern California Home Prices Surge in July
According to the latest figures from CoreLogic, a real estate data firm, Southern California home prices surged in July, with the median price rising 6.2% over just 12 months prior.
The six counties that comprise Southern California had a median home price of $465,000 in July 2016. Notably, CoreLogic figures indicate that this median home price has increased steadily month after month for over four years.
When looking at the bigger picture, prices are still 8% below their bubble-era highs, but in communities such as Highland Park and Santa Monica, record low mortgage rates have combined with a shortage of real estate to push values to their highest level in a decade.
Despite the rise in median sale prices, sales dropped a bit in July 2016. Last month’s figure was 10.7% lower than the sales figures for July 2015, reflecting the largest decline in nearly two years. According to experts, this could be a sign that prospective buyers are starting to show hesitation at the prospect of paying these ever-rising home prices.
But CoreLogic offered a more benign explanation. When comparing July 2015 and July 2016, the latter had two fewer business days in which to record sales with county authorities. So this could account, at least in part, for the decrease. When this is taken into consideration, the drop is only 2%.
Are Buyers Backing Off Due to Rising Real Estate Prices in S. California?
Experts say that there are some signs that buyers are growing hesitant due to the ever-rising real estate prices in Southern California. For perspective, the Case-Shiller home price index rose 5.4% in just one month in Los Angeles and Orange counties. This is significant because the prior year saw a 6% jump — and that was over the entire year!
Many experts predict that Southern California home prices will begin to plateau because just one-third of California households can reasonably afford to purchase a home at the current median price for California — $516,220, according to figures released by the California Association of Realtors.
In recent months, the following increases have occurred throughout Southern California:
- Los Angeles County – Increase of 8.5% to $531,500;
- Orange County – Increase of 4.1% to $640,000;
- San Bernardino County – Increase of 4.9% to $280,000;
- Riverside County – Increase of 5.2% to $335,000;
- San Diego County – Increase of 5.3% to $495,000; and
- Ventura County – Increase of 2.5% to $523,000.
Contact Realtor Brittany Leighton to Buy or Sell Real Estate In Southern California
Brittany Leighton, of Berkshire Hathaway and Brittany Leighton & Associates, Inc. specializes in luxury property sales in Southern California, including Orange County.
If you’re ready to sell your home or wish to buy real estate in Southern California, turn to an award-winning real estate agent, Realtor Brittany Leighton. Call 949.480.7178.